Sport Management Sport Organizations

Attila Kajos Assistant Lecturer

About the subject

Lecturer
Attila Kajos Assistant Lecturer Email: kajos@gamma.ttk.pte.hu Room: Sport Centre Room no. 10 Form of teaching: Lecture/seminar

Assesment
Activity in class Preparing and suggesting case studies (2) Prepare of a class paper

About the subject

Evaluation
Presence at class 10% (10p 1point/class) Case studies 15-15% (15-15p 1 CS/class) Class paper 60% (via email till 30.11.2012)
Topic: Any Sport Management related issue mentioned during the semester (Managing players/teams/other organizations, Critical view of a Management problem in connection with a sport organization. Comparing two nations teams/associations, etc. Through management issues, etc.)

Marks
Excelllent (5) 86% Good (4) 7685% Satisfactory (3) 66-75% Pass (2) 51-65% Fail (1) 0-50%

Course Objectives
Basic Management Knowledge
The environment of an Organization Influenting factors Structural forms Roles of the manager Motivational theories

Sport Management
Sport management elements and its environment. The three sectors of sport. Sport and Government. The role of state in sport development (state and the three sectors). Reason and effect of state intervention.

Course Objectives
Managing Sport Organizations
The sports clubs environment. Sport and non-profit sector. Professional sport. Media, Sponsorship, Player management (With case study). The role of Strategy in Sport Tasks of a sport manager

Sport Marketing
Sport as a Complex Product Creating the Marketing Strategy (STP) Creating the Marketing Mix (7P) Sport Marketing Case study

Introduction to Management

Organization
Organization
A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis.

Organizations
Institutes, Clubs (amateur/profressional, Firms, Multinational companies, etc)

Management
To Manage means
all the activities and tasks undertaken by one or more persons for the purpose of planning and controlling the activities of others in order to achieve an objective or complete an activity that could not be achieved by the others acting independently. (Koontz et al. 1980)

Managemenet contains
Planning Organizing Staffing Directing Controlling

 All managers carry out the functions of planning, organizing, staffing, leading, and controlling, although the time spent in each function will differ and the skills required by managers at different organizational levels vary. Still, all managers are engaged in getting things done through people. ... The managerial activities, grouped into the managerial functions of planning, organizing, staffing, leading, and controlling, are carried out by all managers, but the practices and methods must be adapted to the particular tasks, enterprises, and situation. (Weichrich, 1993)

The factors influencing the organization I.

1. Macro-Environmental Factors (PEST)
1. 2. 3. 4. Political environment Economic environment Technological envoronment Social environment

2. Inner Factors
1. 2. 3. 4. 5. 6. 7. Size Information technology History Terms of employees Geographic dispersion Resources Rate of cooperation

The factors influencing the organization II.

3. The characteristics of the members
1. 2. 3. 4. 5. 6. 7. 8. 9. Professionalism Leadership knowledge Authority General directing and planning objectives The capability of coping with conflicts Tha ability and willingnes to communicate Tha ability and willingnes to cooperate Role flexibility Motivational and interest structure

The factors influencing the organization III.

4. The characteristics of the main functions
1. 2. 3. 4. 5. Diversity Verticality Complexity Durability Freshness

5. Strategy 6. The current Organizational Structure

The interaction of the factors

I. Macro-economical factors

II. Inner Factors

IV. The characteristics of the main functions

III. Characteristics of the Org.

V. Strategy

VI. The current Org. Structure

New Organizational Structure, Operational- and Behavioral forms

Environmental attributes

1. Political environment
Political environment can be analysed as all the Government measures that can affect directlyor indirectly the development of a company's business and may influence negatively or positively on their performance. Some political Factors
Taxation Policy Trade regulations Governmental stability Unemployment Policy

2. Technological environment Characteristics

The frequency of new scientific results The practical adaptation of such technology The predictability of the development The complexity of the technology
Complex Simple

3. Economical Environment
Most important characteristics
Volatility
Dynamic Static

Complexity
Simple
Easy to forecast Stabil plans available Task are easy to set Specialized items Formalized, strict rules Strict hierarchy (autocratic)

Complex
Uncertain environment Decentralized decision making (democratic) Particpative

4. Socio-cultural environment
The characteristics of
The labour market The consumers
Sex Age Income Education level

Expectation of society from the business Cultural behavior Religiousness Attitude towards work Hofstedes dimensions
Power distance Uncertanity avoidence Indidualism/collectivism Masculanity/Feminity Long-Term Orientation

II. Inner Factors

Size and its compositives
No. of employees Assets Annual Revenue Annual Income Division of labour inside the organization The structure used Centralizing or decentralizing The information and communication tools used The question of size and configuration

Size and alignment

History
Establishing cicumstances The organizations connections to a single person or some persons The age of the organization The most important episodes in the life of the organization
Changes in the product line Changes in prices Changes in profile Most important innovations Changes in the leadership/ownership Structural and/or managerial changes

Geographic dispersion
Nuber of locations (shops, factories, plants, etc.) The geographic positions of these locations The distance between the locations The differences between nations and regions Differences of city and rural; capital and country (especially in countries like Hungary, Belarus, Denmark, Sweden, Norway, etc.) Distribution and transportation cost and availability

Structural attributes of an Organization

Attributes
1. Division of labour 2. Division of competences
1. Span of control 2. Hierarchy of Authority 3. Line vs. Staff

3. Coordinational tools 4. Configuration

1. Division of labour
Dividing the original working into smaller specialized pieces, untill last process Defining and arranging these task to individuals (everyone has to know his/her job in the organization) This is one of the basics, when structuring the organizaton Department establishing is mainly done through these principles

1. Division of labour
Main dividing factors
Functions Products / Product lines - Material Regional

We differentiate two types

One dimensional organization
It is only divided by one of the above factors

Two or more dimensional organization

Divided by two or more from the above mentioned factors.

2. Division of competences
Span of control
A wide span of control: a large number of employees reporting, A narrow span of control: a small number employees reporting The appropriate span of control depends on the experience, knowledge and skills of the employees and the nature of the task.

2. Division of competences
Line vs. Staff
Line positions are those in which people are involved in producing the main goods or service or make decisions relating to the production of the main business. Staff positions These are positions in which people make recommendations to others but are not directly involved in the production of the good or service

2. Division of competences
Categories
Line

Staff

Line vs. Staff

Line Staff Pros Hierarchy and competencies and Large scale of specialization through the responsibilities are clear and certain. The division of functions. The instruction and connections are easy to overview and informational ways are direct. Its a creative simple. The hierarchy avoids the fraud from and open environment, where productive outside. conflicts may occure.

Cons Much of the time from the higher The distinction of competencies and manageent is used for coordination tasks. responsibilities can be hard in the view of The process of instructions and informations the entire organization. can be very slow and roundabout, with a The conflicts can easlily became personal. deep horizontal structure. It can cause personal dependence between manager and staff.

3. Coordination
Meanings
The act of state of coordinating or of being coordinated Proper order of relationship Harmonious combination or interaction, as of functions or parts

Coordinational tools
Type of coordinational tool Koordincis eszkz Hierarchiy (vertical coordintion) AdHoc and regulal commitees, teams, projects Product managers and matrix type solutions

Structural

Technocratic

Rules, Regulations, Procedures Plans, Programmes, Guides Blueprints, financial plans, general budget, etc. Conflict solving Manager recruitment Organizational structure Organizational Culture Training Etc.

Person orientated

4. Configuration
The organizational structure derived from the previously mentioned The materialization of the organization Characteristics
Depth (the number of vertical hierarchy levels) Width (the number of horizontal levels) Size (the number of staff under a certain manager)

Structures
Functional structure
CEO

Manufacturing

Sales

R&D

Accounting & Finance

Requirements
Static environment, narrow product-line

Characteristics
Strict hierarchy, regulation, centralization, mainly vertical coordination,

Advantages
Efficiency, easier communication

Disadvantages
Isolation of units, Egoist units, coordinational problems

Divisional structures
Product Structure
CEO Soup Division Nuts Division

Manufaacturing

Sales

Manufacturing

Sales

Market structures
CEO

Corporate Customers

Individual Customers

Sales

Customer Service

Sales

Customer Service

Divisional structures
Geographic Structure
CEO

West

East

Sales

Customer Service

Sales

Customer Service

Divisional structure
Characteristics
Wide range of heterogeneous products, product lines, dynamic environment Decentralized by primer functions/products/geographicly and centralized inside the dimensions Horizontal coordination between groups is not typical Coordinating with mainly technocratic tools

Advantages
Strategic and Operative tasks are easy to separte Strong market orientation, Low horizontal coordination costs

Disadvantages
Division egism, Harder integration of strategic and operative goals, duplication of effort, paralell functions

Matrix structure

Matrix structure
Characteristics
Dynamic and heterogeneous environment, complex and risky tasks, developed communication skills Not strictly regulated Two dimension working together on the problem in the point of intersection The managers of the dimensions must have the same competences Mainly personal orientated coordination is used

Advantages
Adaptivity, Innovative, Higher performance

Disatvantages
The delimination of competencies is hard, Rivalry of managers, Overlaboured groups, Decision avoidance, Responsibility avoidance and devolution, Needs good skills from the staff

Before Strategy making PEST and SWOT analysis

PEST analysis
Political trends
Political, legal and regulatory issues affecting the comany Identifying political trends, rules, etc.

Economic trends
Macroeconmic (Prosperity,Recession,Depression,Recovery) Smaller trends (Change in income,

Cultural and Social trends

Values, beliefs, tradition of a given society (field of operation) Demography (population, age, free time spending, etc.)

Technology trends
On and off-market technology innovation and technology acceptance

Micro Environment

Value net
Competitors Suppliers Customers Consumers Audience

General Public

Company

Distributors

The core of the Straregy

Competitor analisys
1. Identify
The level of competition (direct, indirect) Monitoring system Strategy, goals, strong and weak points, reactions, etc. The group of competitors Positioning Unique selling proposition (USP) Other competitive advantages

2. Recognition and Evaluation

3. Competitive strategy

SWOT analysis
Whai is it?
A scan of the internal and external environment an important part of the strategic planning process.

It is used by
Management Marketing Finance Logistics etc.

Process of SWOT
Choosing the Environmental characteristics Environmental Opoortunities Analyzing the external (macroand micro) environmnet Environmental Threats Organizational Strengts Organizational Weaknesses

Analyzing the inner (organizational) environment

Comparing the factors

Acting possibilities
-Choosing the decisive alternatives -Comparing analyss -Decision making

Strenghts
A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples
patents strong brand names good reputation among customers cost advantages from proprietary know-how exclusive access to high grade natural resources favorable access to distribution networks

Weaknesses
The absence of certain strengths may be viewed as a weakness. Examples
lack of patent protection a weak brand name poor reputation among customers high cost structure lack of access to the best natural resources lack of access to key distribution channels

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and growth. Examples
an unfulfilled customer need arrival of new technologies loosening of regulations removal of international trade barriers

Threats
Changes in the external environmental also may present threats to the firm. Examples
shifts in consumer tastes away from the firm's products emergence of substitute products new regulations increased trade barriers

The SWOT matrix (type 1)

SWOT matrix (type 2)

S-O strategies pursue opportunities that are a good fit to the company's strengths. W-O strategies overcome weaknesses to pursue opportunities. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it highly susceptible to external threats.

Strategy

Strategy
Strategy is
the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals (Chandler, 1962)

Strategic management
analyzes the major initiatives taken by a company's top management on behalf of owners, involving resources and performance in external and internal environments. (Nag et al., 2007)

Strategic management (Chaffe, 1985)

Involves adapting the organization to its business environment is fluid and complex. Change creates novel combinations of circumstances requiring unstructured non-repetitive responses. affects the entire organization by providing direction. involves both strategy formation (content) and also strategy implementation (process). is partially planned and partially unplanned. is done at several levels: overall corporate strategy, and individual business strategies involves both conceptual and analytical thought processes

Lamb (1984)
Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; Assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment, or a new social, financial, or political environment.

How to choose the strategy?

The basis of competition (Porter, 1998)
Differentiation (higher price for few) Cost (low price for all) Segmentation (Niche strategy)

Main characteristics (Johnson et al., 2008)

Suitability Feasibility Acceptability

Hierarchical definition of Strategy

Vision (Shank, 2005)

A long term road map of where the organization is headed. It creates organizational purpose and identity. A well writen vision is necessary for the effective leadership of an organization. The vision should address the following
Where does the organization plan go from here? What business do we want to be in? What customer needs do we want to satisfy? What capabilities are required for the future?

Mission
The key question of the mission
What is the main mission and goal of the organization (an abstract value: creating What are the main (core) values of our organizations? What behavioral norms it follows? What sort of political and social role it tries to fulfill?

The mission statement in the USA (Shank, 2005)

The mission is a written statement about the organizations present situation. Its purpose is to inform the stakeholders (e.g. owners, consumers, suppliers, etc.) about the direction of the organization. The key question of the mission statement
What business are we currently in? Who are our current customers? What is the scope of our market?

Strategy
Types of strategies
Corporate strategy (the overall strategy of the company stated in the mission and vision) Business strategy (strategy of a single firm or product line/product, etc.) Functional strategy
Marketing strategy

Traditional Strategy Goals

Value creation and Value sharing Building strong leadership ans good motivation Revenue growth Optimalizing the Value Chain New Product Innovation Contracting (eg. with Suppliers, distributors, etc.) Quality of the product Branding issues Customer engagement Globalization (wider range of operation)

Tactics
Are the smaller, and mid term components of the Strategic Goals It gives us the answer to How? Eg. Strategic Goal - Increase revenue
Increase productivity Increase marketing/advertising activity Give some reduction for regular/big customers Increase effectiveness (with managerial tools eg. Motivation) Etc.

Operations and Actions

The exact process of the decided tactics
Sale of 50% until 09.30. to 10.05. Buy 2, get one free Increase the bonus if the production rises with 10% Find a better supplier for a component Sign a contract with somebody, etc.

Short term issues Relatively urgent issues Need to do issues Etc.

Robin Hood case study questions

1. What was the original mission and vision of Robin Hood and the Marrymen? 2. Identify Robins main problems.
1. 2. Make a brief PEST analysis Make a brief SWOT analysis

3. With the help of the environment scanning, identify the main strategic and operational problems. Which ones are the most immediate ones? 4. What strategic options does Robin Hood have?
Eg. Killing the Sheriff, Accepting the barons offer, etc.

5. What operations and actions plans do you recommend to Robin? 6. How should Robin implement the recommended plan, and what steps will need to be taken, to make the recommended strategy work?